Oil Price Jumps After Investors Pile In After MH17 Jet Shot From The Sky

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(Newswire.net — July 18, 2014) Hersham, Surrey — The price of oil jumped up after investors piled in on news of the Malaysia airlines MH17 being shot out of the sky by a BUK Russian made anti aircraft system.  The BUK system is a fairly complicated system to use according to military experts, requiring someone with training in the use of such an advanced system pointing the finger at Russia or Russian trained seperatists in East Ukraine.  If it transpires that Russia supplied the weaponry or its’ military actually shot the stricken jet down there could be far reaching consequences hence why people piled into ‘safe havens’ like oil, silver and gold.

 

According to oil expert Thomas Richards from http://www.OilWealthForever.com when there is a terroriist attack or some unforseen ‘black swan’ event like an invasion or war declared investors tend to make a shift into safe assets like oil and out of seemingly more risky assets like stocks and shares as people know that ‘safe haven’ assets are much more likely to protect their wealth.  If anything goes seriously wrong then at least people the world over will still need oil to power their cars and homes so it is a pretty safe bet that oil will still be in high demand keeping their money safe and maybe actually increasing their wealth as the demand goes up.  Stock markets tend to tumble as the wealth moves from stocks and shares into the safer physical products like oil, gold and silver.

 

Front month Brent crude oil prices were $4 up a barrel on Friday morning from the price previous to the news of flight MH17 to $103.79.  Stock markets around the world took a hit with the Russian benchmark MICEX Index falling more than 1.3% by lunchtime in Moscow hitting its lowest point in more than two weeks.  European stock markets also fell along with the US markets with fear about new sanctions being imposed on Russia.

 

This could mean a period of more volatile oil prices with uncertainty around the globe increasing opportunities for investors looking to take advantage of the moves in the price of oil and other commodities.  

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